🚀 Medial just raised $500k in Pre-Series A. Tap to read the announcement. 🎉

Download App

Home

Switch theme

Blog . Feedback . Privacy
Community Guidelines

Back to feeds

Anonymous

Stealth • 4m

✨ ENTREPRENEURS IQ TEST ✨ In the context of venture capital, which term describes a contractual clause that allows investors to protect their investment by requiring the startup to grant them the option to purchase additional shares at a discounted

Drag-Along Rights

Liquidation Preference

Conversion Rights

Anti-Dilution Provision

Votes: 5

Anonymous

Stealth • 4m

What is — Anti-Dilution Provision An anti-dilution provision is a contractual clause that protects investors from losing their ownership percentage if new shares are issued at a lower price than their initial investment. This provision ensures that investors can purchase additional shares at the lower price to maintain their ownership stake. Example: Imagine you invested in a startup and bought 1,000 shares at $100 per share, totaling an investment of $100,000. Now, the company is raising funds again and issues 1,000 shares at $80 per share.With an anti-dilution provision, your investment is protected. This means you would have the right to purchase additional shares at the $80 price to maintain your ownership percentage and ensure your investment value doesn’t decrease. This helps investors avoid having their stake diluted when new shares are issued at a lower price.

0 replies1 like

Recommendations from Medial

Rajan Paswan

Stealth • 8m

Starting a startup is exciting, but understanding the shareholder agreement (SHA) is crucial. Today, let's focus on Dilution. What is dilution? Imagine you and a friend each own half a pizza (50% each). If you bring another friend in and share more

18 replies48 likes

Mr Z
•

Medial • 5d

Flipkart sold for $16 billion, but the founders got almost nothing. After looking at 100+ startup deals, I found some toxic terms that hurt founders: 1. Liquidation Preferences: Investors get their money back first. If the sale price is low, founde

10 replies22 likes

Jeet Sarkar

Stealth • 9m

Nazara Technologies Ltd, a Mumbai-based mobile gaming and sports media company, has issued shares worth Rs 100 crore to Nithin Kamath and Nikhil Kamath, the founders of Zerodha. The move is part of a broader investment in which Nazara allocated 28.

5 replies24 likes

Anonymous

Stealth • 4m

Drag-Along Rights

Liquidation Preference

Conversion Rights

Anti-Dilution Provision

Votes: 5

1 replies5 likes

Sourav Garg

Stealth • 3m

How to success against blinkit, swiggy instamart in quick commerce space? Can we win by lower price or cross selling other services at very lower price etc?

12 replies12 likes

financialnews

Stealth • 1m

0 replies5 likes

financialnews

Stealth • 1m

Waaree Energies shares make strong debut, list at ₹2,500 on NSE, up 66.3% over IPO price . . Shares of Waaree Energies made a strong on the bourses on Monday, October 28, listing at ₹2,500 on NSE, a premium of 66.33 percent to the issue price of ₹1,5

0 replies6 likes

financialnews

Stealth • 1m

Swiggy shares list at ₹420 on NSE, opening 7.7% above IPO price in a highly anticipated debut Swiggy's IPO debuted at ₹420 on NSE, up 7.7% from its issue price. The IPO was oversubscribed 3.59 times, attracting significant interest from institutiona

4 replies4 likes

Tarun Chauhan

Stealth • 18d

We will get a website made for you, that too at a price lower than the market price and we also have a designer to design the website

0 replies1 like

Hemanth Varma

Stealth • 1m

can mutual fund be a profitable investment? A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its po